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Can I get financial recovery from Fidelity mismanagement?

Redlands, CA |

Fidelity talked me into trying a managed account, but after a year I wanted it stopped as not keeping up with market. My agent was to research funds, but dragged it out for months. I called to say I wanted it out now, and he went out for vacation again. I played phone tag with his replacement, and I finally got him on Friday, but he said market closed so would have my agent call on Monday. He didn't and I tried him for several days. I called the 800# to demand it close now, but they said it would take 2 days! From Friday to when they finally closed the account, the market dropped 500 points, and it cost me ~ ten grand. Can I get financial recovery from their poor service and mismanagment? (Can't explain it in detail with limited text space).

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Attorney answers 1


To prevail on a claim, you will need to establish negligence on the part of Fidelity and or/ its agent caused your loss. It isn't clear to me from your message whether you can in fact make out a claim for negligence, but it may be possible.

Since this is a securities matter, there is undoubtedly an arbitration provision in your contract documents with Fidelity and/or your agent, requiring that most claims be arbitrated before an agency whose acronym is FINRA. There may be an exception in the provision for claims that can be presented to a small claims court, and the small claims limit in CA now is $10K in some cases. You thus may be able to avoid arbitration by waiving any claim over $10K and going to small claims court -- but it will depend on the contract documents.

If you have questions, you should contact a lawyer who has experience in FINRA securities proceedings and negligence with respect to securities agents and brokers.

Good luck to you.